Criticism is growing around Pump.fun’s tokenomics, with many users arguing that the system may favor insiders over long-term holders. Reports suggest that a significant portion of the token supply is held by early participants, who may be selling into buybacks and using them as exit liquidity.

This dynamic creates a potential imbalance: while the protocol continuously buys tokens from the market, insiders may be offloading supply at the same time. Critics argue that this structure undermines price growth and shifts value away from retail participants, fueling ongoing backlash within the community.